Pact binds PCC, DOE to push competition, coordinate probes in power sector

By Lenie Lectura - June 12, 2019

https://businessmirror.com.ph/2019/06/12/pact-binds-pcc-doe-to-push-competition-coordinate-probes-in-power-sector/

The Philippine Competition Commission (PCC) and the Department of Energy (DOE) signed on Tuesday a memorandum of agreement (MOA) meant to promote market competition and coordinate investigations in the power sector.

“The PCC and the DOE share a common vision of a more robust competition landscape in the power industry. With the energy department having the technical assets and ensuring proper functioning of the energy sector, we are confident this complementation of efforts with PCC’s own investigative capacity will lead to a stronger push for competition enforcement,” said PCC Chairman Arsenio M. Balisacan.

Under the MOA, both agencies have identified collaborative mechanisms where the PCC and DOE can count on information sharing, investigation support, technical audits, joint task forces, and continued capacity building and consultations. It also paves the way for the creation of a technical working group to coordinate investigation efforts into alleged collusions or abuses of dominance in the energy sector.

This after the PCC said in April that it will look into allegations of possible collusion or abuse of dominance of certain power generators following simultaneous power-plant shutdowns that may have caused an artificial supply shortage and consequently a hike in electricity prices.

The PCC warns power-generation companies from engaging in anticompetitive or collusive behavior, which is punishable by the competition law with fines of up to P250 million, and imprisonment of responsible officers of up to seven years.

“Ensuring consumers are provided adequate supply of electricity on fair terms and prices, while allowing market players of all sizes to operate on a level playing field is at the center of our partnership,” Balisacan said.

The DOE’s role is to implement policies ensuring reliability, quality and security of supply of electric power. On the other hand, the PCC, as the country’s competition authority, is mandated to prohibit anticompetitive agreements and conduct in all sectors of the economy, and impose fines and penalties for violators.

The PCC-DOE MOA is the latest in a string of partnerships with government agencies and institutions in strengthening a coordinated, interagency approach to promote fair market competition.